Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
4 Dec 2004
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s. Hindustan Finstock Ltd., whose registered office is in Ahmedabad, on December 2, 2004. The action was taken under Section 45IA of the RBI Act, 1934, and applies to the company’s authority to carry on the business of a non-banking financial institution. The release does not describe any specific misconduct or violation beyond the statutory basis for cancellation. RBI also notes that the company remains under an obligation to repay public deposits in accordance with the terms and conditions of the deposit contract.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to M/s. Hindustan Finstock Ltd. on December 2, 2004, under powers conferred by Section 45IA of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution; no further factual breach or violation is described in the text. The company remains obligated to repay public deposits according to the terms of the deposit contracts.
Operating Impact
M/s. Hindustan Finstock Ltd. can no longer operate as a registered NBFC. Public depositors are still entitled to repayment according to the original contract terms, so the company remains obligated to honor those liabilities despite the cancellation.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 2 Dec 2004
- Effective From
- 2 Dec 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC